Nonresident for Tax Purposes

A nonresident alien for tax purposes is an alien who has not passed the “Green Card” Test or the Substantial Presence Test.

What income is taxable for a nonresident for tax purposes?

Nonresident aliens use Form 1040NR or 1040NR-EZ to report only income sourced in the United States, or effectively connected with a United States trade or business. Read more about "effectively connected income," and "Source of Income" by using the preceding links.

Nonresident aliens who receive interest income from deposits with a U.S. bank, savings & loan institution, credit union, or insurance company, or who receive portfolio interest are exempt from taxation on such interest income as long as such interest income is not effectively connected with a United States trade or business.

Generally speaking tuition waivers for degree seeking students are not taxable.

Proceed to filing help:

No Income in the U.S.: Form 8843

Income in the U.S.: Filing Federal and State Income Taxes